The integral position that financial technology (Fintechs) institutions have come to occupy in the financial sector cannot be overemphasised.

In recent years, we have witnessed the proliferation of Fintech companies offering innovative solutions that include mobile payment apps, online payment gateways, point-of-sale (POS) systems, peer-to-peer (P2P) payment platforms, digital wallets, crypto-currency payment processors, and invoice financing platforms, among others. These wide spectra of innovations have promulgated financial inclusion through increased access to lending, wealth management, insurance and investment – both to individuals and SMEs.

Despite these obvious benefits, there are equally obvious caveats. This is easy to understand as it is generally accepted that with great innovation comes great responsibility – a responsibility, within this context, which relates to the management of risk and the adherence to strict compliance requirements.

According to the International Monetary Fund (IMF), the inflation dynamic in 2024 will have important implications for the global economy, as it will affect exchange rates, interest rates, asset prices, income distribution, and the debt sustainability of many countries and regions.

This will also pose challenges and opportunities for small and big businesses which will have to adapt to the changing price levels and expectations, while deftly managing the associated risks and uncertainties. Fintechs and other innovative solution providers are no exception. This calls for a sophisticated understanding and appreciation of factors that will enable growth and sustainability within such adverse scenarios.

As a leading provider of Fintech services in this country, I will urge Fintech companies to focus on improving the following crucial pillars of success to thrive in the rapidly evolving financial technology industry.

The backbone of Fintech is technology. Firms need to leverage the latest technological advancements to drive innovation and efficiency by embracing technologies such as artificial intelligence (AI), blockchain, machine learning, and the cloud.

Taking AI for instance, at present, artificial intelligence is playing a crucial role in helping businesses automate routine procedures and improve outcomes on a scale beyond human intelligence. The early application of artificial intelligence enables Fintech companies to identify threats, prevent fraud, automate everyday tasks, and enhance the quality of service. All these lead to improved efficiency and higher profits.

AI in the financial world is the driving force behind many solutions to improve security. For example, banks offer apps that can only be accessed with face or fingerprint recognition. This is primarily made possible by AI.

Nonetheless, it’s worth noting that adopting AI must be carefully done with the needed expertise and procurement of genuine software to avoid being exposed to cyber-security risks.

Problem-solving. At the end of the day, technology is only as useful as the problem it solves. Fintech, in itself, is not only an opportunity; it is a means to an opportunity. And the opportunity is to solve the under-penetration of financial services in the country.

Fintech professionals must be adept problem-solvers, capable of finding innovative solutions to complex risk challenges in the business ecosystem and to society in general.

Regulation and compliance: The Bank of Ghana (BoG) keeps updating its regulatory guidelines for the financial sector, especially on cyber-security, from time to time. Compliance with regulatory requirements is essential for Fintech companies operating in a highly regulated industry.

Fintech firms need to have a deep understanding of the regulatory landscape and implement robust internal controls and risk management systems to ensure compliance and mitigate regulatory risks.

Customer experience: Fintech companies should prioritise delivering an exceptional customer experience. Building user-friendly platforms, offering personalised services and providing robust customer support are essential to meet the evolving needs and expectations of customers.

Customer service and relationship management is another critical area where AI technologies provide tangible value. Fintech companies can use chatbots to quickly answer customer questions and improve customers’ overall experience with their products and services.

Data Security and privacy: Data security is the process of protecting electronic information by mitigating information risks and vulnerabilities. Fintech companies deal with sensitive customer data, making data security and privacy critical aspects of their operations. Fintech firms must implement robust security measures to protect customer information and adhere to data protection regulations to maintain customer trust.

As the speed, delivery and capabilities of Fintech firms diverge from those of traditional financial services organisations, they must still adopt similar data security and data privacy measures in compliance with current regulations.

Ultimately, customers want their data protected; so doing the right thing should be a no-brainer to maintain customer loyalty and satisfaction. Otherwise, get ready for savvy customers to flee to competitors.

Collaboration and partnerships: Fintech firms should actively seek out and form strategic partnerships and alliances with financial institutions, technology providers and other Fintech companies. These collaborations can drive growth, provide access to new markets or technologies, and foster innovation within the organisation.

In the Ghanaian ecosystem, it is a known fact that collaborations between traditional financial institutions and Fintechs have helped foster financial inclusion and innovation while expanding customer reach and market share. Collaborations have long proven the mutual benefits they bring to partnering businesses.

Through collaboration with accelerators and incubators, platforms, and third-party apps, among others, Fintech start-ups can gain access to expertise and resources while also being able to expand their customer base.

Talent acquisition and development: Attracting and retaining top talent is crucial for the success of Fintech companies. Building a positive and inclusive work culture, focusing on employee development programmes, and ensuring continuous learning improve the skills and knowledge needed to thrive in the Fintech industry.

The rapid growth and transformation the sector is experiencing means that organisations require a workforce that is not only proficient in current technologies, but also capable of pushing the boundaries of financial innovation.

The demand for specialised tech talent – those with expertise in blockchain, digital currencies, payment systems and cyber-security – is rapidly increasing. This surge has introduced a complex challenge for talent acquisition: finding and securing individuals who can drive Fintech’s ambitious agenda forward.

However, due diligence is very important in talent acquisition to avoid bad character pitfalls that might wreak havoc in the workplace. Remember, talent with professional ethics adherence, moral ethics and integrity are not enough.

Overall, successful Fintech management requires a comprehensive understanding of technology, regulations, problem-solving, customer needs, security, collaboration and talent management. By focusing on these crucial pillars, Fintech managers can navigate the challenges and opportunities of the Fintech ecosystem and drive sustainable growth.